"Our ability to provide the required LTV on very competitive terms and our experience closing similar transactions enabled this loan to complete smoothly"
- Sean Adams - HREF
Specialist bridge lender Hilco Real Estate Finance has backed southwest based Somerton Construction Limited with a £5.1m loan secured against nine high-spec residential properties.
Located on a historic site in Somerton, Somerset, the nine-property development had experienced some delays and cost increases, mainly as a result of Covid. With the development having just achieved practical completion, Somerton Construction’s existing lenders had reached the end of their term and did not wish to extend.
The developer turned to HREF which was able to provide a development exit bridging loan to give the developer the time it required to market and sell the units.
Sean Adams, managing director of HREF, said: “We were pleased to assist the borrowers who have developed nine high-quality units on this attractive, historical site.
"As they approached practical completion, they needed some additional time to properly market and sell the individual units. Our ability to provide the required LTV on very competitive terms and our experience closing similar transactions enabled this loan to complete smoothly.
“As is often the case, they are a strong business with a viable project which happens to fall outside normal the strict criteria of many traditional lenders.
"Fortunately, as a group of experienced finance professionals, we were able to take the time to understand the business and this particular project, and to provide the flexible lending facility they needed.”
